KUALA LUMPUR (Dec 5): HB Global Ltd (KL:HBGLOB) said it has partnered with a company belonging to the Regent of Pahang  to jointly develop artificial intelligence (AI) technology-driven agriculture activities on 500 acres of land in Pekan, Pahang.

The joint venture entity, HB Global Capital Sdn Bhd, will be 55%-owned by HB Global and 45% by HIS Holdings Sdn Bhd, whose sole shareholder is Tengku Hassanal Ibrahim Alam Shah ibni Al-Sultan Abdullah. 

Tengku Hassanal Ibrahim Alam Shah is also the owner of the 500-acre land, said HB Global in a stock exchange filing on Thursday.

HB Global, a Singapore-based frozen food manufacturer listed on Bursa Malaysia's Main Market, said it will lead the development and operation of the project, while HIS Holdings will procure the land and oversee related approvals.

Meanwhile, HB Global’s technology partner, Work At Cloud Sdn Bhd, with experience in software, security solutions and AI-driven agriculture, will provide AI and internet of things (IoT) systems to improve efficiency.

“For this venture, we will be investing up to RM9 million to transform a 500-acre site in Pahang into a cutting-edge, AI-driven plantation," said HB Global chairman Datuk Muhammad Abdullah in a statement.

The RM9 million investment will fund AI systems integrated with IoT devices to monitor soil, climate and crop health in real-time. These technologies aim to optimise resource use, improve yields, enhance efficiency and reduce labour dependency, said HB Global.

The land, currently designated for agricultural use, is leased for an initial three years, with options for 19 additional three-year terms. The agreement also includes converting the land's use for the project, which is expected to feature advanced AI-driven farming and crop cultivation tailored to the terrain.

HB Global’s share price closed half a sen or 5.26% lower to nine sen on Thursday, valuing the company at RM70.38 million.